CIFOR/CARPE - UNIVERSITY OF YORK, ENVIRONMENT DEPT CAMEROON SAP/DEFORESTATION STUDY A CASE STUDY ANALYSIS OF THE EFFECTS OF STRUCTURAL ADJUSTMENT ON AGRICULTURE AND ON FOREST COVER IN CAMEROON FINAL REPORT APRIL 1999 PREPARED BY JAMES K.A. BENHIN AND EDWARD B. BARBIER ENVIRONMENT DEPARTMENT, UNIVERSITY OF YORK, UK FOR THE CENTER FOR INTERNATIONAL FORESTRY RESEARCH (C I F O R) AND THE CENTRAL AFRICAN REGIONAL PROGRAM FOR THE ENVIRONMENT i CIFOR/CARPE - UNIVERSITY OF YORK, ENVIRONMENT DEPT CAMEROON SAP/DEFORESTATION STUDY (CARPE) ii CIFOR/CARPE - UNIVERSITY OF YORK, ENVIRONMENT DEPT CAMEROON SAP/DEFORESTATION STUDY Acknowledgements This study was a project activity of the Center for International Forestry Research (CIFOR). The activity was funded both by CIFOR and by the Central African Program for the Environment (CARPE). The work was undertaken at the Environment Department (formerly the Department of Environmental Economics and Environmental Management (EEEM)) of the University of York, UK. In producing this report, the authors wish to take the opportunity to acknowledge with thanks the support of the sponsors and the help of all persons and institutions in making the study possible. Particular thanks are due to Dr. William Sunderlin of the CIFOR and Dr. Laurent Somé of CARPE. Many thanks are also due to Prof. Charles Perrings, Head of the Environment Department, Dr. Jon Lovett and Ms. Joanne Burgess all of the Environment Department, and Dr. David Kaimowitz of CIFOR, for their invaluable comments at various stages of the work. Others who helped the study greatly include, Dr. Ndoye Ousseynou and Dr. James Gockowski of the International Tropical Timber Organization (ITTO) office in Cameroon. Many others have helped in this project, and although unmentioned by name, are sincerely thanked. iii CIFOR/CARPE - UNIVERSITY OF YORK, ENVIRONMENT DEPT CAMEROON SAP/DEFORESTATION STUDY Table of contents Page Acknowledgements i List of Tables iv List of Figures iv List of Acronyms and Abbreviations v Exchange rates (CFA F/US$), 1965-95 vii Chapter 1: Introduction 1 1.1 Background and statement of the problem 1 1.2 Objectives and approach of the study 3 Chapter 2: Land use, forestry and agriculture and the implications for biodiversity in Cameroon 5 2.1 Introduction 5 2.2 Land use and forests in Cameroon 5 2.2.1 Reserve forests and conservation areas 8 2.2.2 Unreserved forest, non-forest lands and forest plantations 9 2.3 Biodiversity in Cameroon=s forest 9 2.4 Deforestation, forest degradation and biodiversity loss 11 2.5 Causes of deforestation and forest degradation 13 2.6 The forestry industry 14 2.6.1 The role of the forestry industry in the Cameroon economy 14 2.6.2 Structure of the forestry sector 15 2.6.3 The operation of the timber industry in Cameroon 16 2.6.4 Production and export performance of the timber industry 17 2.6.5 Conclusions 18 2.7 The agricultural sector: cash and food crops 18 2.7.1 Relationship between cash crops and food crops 18 2.7.2 The role of agriculture in Cameroon 19 2.7.3 The nature and state of agriculture production in Cameroon 19 2.7.4 Development problems and constraints 23 Chapter 3: The structural adjustment programme and policies influencing deforestation in Cameroon 25 3.1 Introduction 25 3.2 An overview of Cameroon=s Structural Adjustment Programme 25 3.2.1 Structural Adjustment Progr ammes 25 3.2.2 Why the need for/nature of macroeconomic adjustment 25 3.2.3 Why Cameroon needed a reform 27 3.2.4 The economic reform strategy and devaluation iv CIFOR/CARPE - UNIVERSITY OF YORK, ENVIRONMENT DEPT CAMEROON SAP/DEFORESTATION STUDY in Cameroon 34 3.2.4.1 Price, market and trade reform 35 3.2.4.2 Public enterprise and banking sector reform 36 3.2.4.3 Institutional reform and the role of the state 36 3.2.4.4 Exchange rate adjustments 37 3.3 Agricultural policies - Structural adjustment programme 37 3.3.1 Disengagement of the state from agricultural activities 37 3.3.2 The elimination of distortions 38 3.3.3 Specific agricultural policies under SAP 38 3.3.3.1 Extension services 38 3.3.3.2 Marketing and pricing 39 3.3.3.3 Input prices 40 3.3.3.4 Agricultural credit 40 3.4 Forestry policy reforms under the Structural Adjustme nt Programme 41 3.5 Policies affecting deforestation and forest degradation 42 3.6 Policies addressing deforestation and degradation 45 3.6.1 Forestry policies 45 3.6.2 Agricultural policies 45 3.6.3 Conservation initiatives 46 3.7 Conclusions 47 Chapter 4: A theoretical and an empirical model of tropical land use for forestry and agriculture 48 4.1 Introduction 48 4.2 The theoretical model 48 4.2.1 Maximisation problem 50 4.2.2 Optimality conditions 50 4.3 The empirical model of tropical land use and deforestation 53 4.4 Conclusions 55 Chapter 5: Discussion of empirical estimates 56 5.1 Introduction 56 5.2 Estimation procedure 57 5.3 Cocoa land results 59 5.4 Coffee land results 62 5.5 Maize land results 64 5.6 Plantain land results 67 5.7 Timber results 69 Chapter 6: Summary, conclusions and policy implications 72 References 76 v CIFOR/CARPE - UNIVERSITY OF YORK, ENVIRONMENT DEPT CAMEROON SAP/DEFORESTATION STUDY List of Appendices 81 Appendix 2.1 Administrative map of Cameroon 82 Appendix 2.2 Major vegetation types of Cameroon 83 Appendix 2.3 Production and exports of industrial roundwood in Cameroon (1965-1997) 84 Appendix 3.1 Real per capita GDP (1987 values) in Cameroon, 1965-95 (>000 CFA) 85 Appendix 5.1 Definitions of variables and data sources 86 vi CIFOR/CARPE - UNIVERSITY OF YORK, ENVIRONMENT DEPT CAMEROON SAP/DEFORESTATION STUDY List of Tables Page Table 2.1 Estimates of rainforest extent in Cameroon 7 Table 2.2 Production and exports of industrial roundwood in Cameroon (1965-1997) (>000 cum) 18 Table 2.3 Land area harvested of some selected agricultural crops in Cameroon (1965-1995) (>000 ha) 22 Table 2.4 Production of some selected agricultural crops in Cameroon (1965-1995) (>000) 22 Table 2.5 Yield per hectare (ha) of some selected agricultural crops in Cameroon (1965-1995), (kg/ha) 22 Table 5.1 Ordinary least squares estimation of the cocoa land equation (Lc) 60 Table 5.2 Ordinary least squares estimation of the coffee land equation (Lf) 63 Table 5.3 Ordinary least squares estimation of the maize land equation (Lm) 65 Table 5.4 Ordinary least squares estimation of the plantain land equation (Lp) 68 Table 5.5 Ordinary least squares estimation of the timber production equation (Lc) 71 Table 6.1 Average changes in agricultural land and timber production as a result of a 10 per cent increase in prices in the Structural Adjustment Period (1989-95) 74 List of Figures Figure 3.1 Real prices of cocoa (1990 values) in Cameroon (1965-95) (CFA F/mt) 28 Figure 3.2 Real prices of coffee (1990 values) in Cameroon (1965-95) (CFA F/mt) 28 Figure 3.3 Real prices of maize (1990 values) in Cameroon (1965-95) (CFA F/mt) 29 Figure 3.4 Real prices of plantain (1990 values) in Cameroon (1965-95) (CFA F/mt) 29 Figure 3.5 Real ave. prices of indust. roundwood (1990 values) in Cameroon (1965-95) (CFA F/cum) 30 Figure 3.6 Real average prices of fertilizer (1990 values) in Cameroon (1965-95) (CFA F/mt) 31 vii CIFOR/CARPE - UNIVERSITY OF YORK, ENVIRONMENT DEPT CAMEROON SAP/DEFORESTATION STUDY List of Acronyms and Abbreviations ADB African Development Bank BEAC Banque des Etats de l=Afrique Centrale CCCE Caisse centrale de Coopération Economique CENADEFOR National Centre for Forest Development CFA Communauté Financière Africaine CIDA Canadian International Development Agency CIFOR Centre for International Forestry Research CITES Convention on International Trade in Endangered Species of World Fauna and Flora cum cubic metres ECOFAC European Community Central African Forest Project ERP Economic Recovery Programme EU European Union FAO United Nations Food and Agriculture Organization FIMAC Fonds d=Investissement de micro-Realisation Agricoles FOB Free on Board FONADER Fond National de Development Rural FSC Forest Stewardship Council GDP Gross Domestic Product GIS Geographical Information Systems ha hectares HEVECAM Hévéaculture du Cameroon (Cameroon Company for Rubber Production) IDA International Development Association IFS International Financial Statistics IIED International Institute for Environment and Development IMF International Monetary Fund IRA Institute of Agronomic Research ITTO International Tropical Timber Organization IUCN The International Union for Conservation of Nature and Natural Resources MIDEVIV Mission de development des Cultures Vivrieres (Food Development Authority) MINAGRI Ministry of Agriculture NCCB National Cocoa and Coffee Board NGO Non-governmental Organization NPMA National Produce Marketing Board ODA Overseas Development Agency ONADEF National Forests Development Office ONAREF National Office of Forest Regeneration PAGE Economic Management Support Project PE Public enterprises QR Quantitative Restrictions SAL Structural Adjustment Loan viii CIFOR/CARPE - UNIVERSITY OF YORK, ENVIRONMENT DEPT CAMEROON SAP/DEFORESTATION STUDY SAP Structural Adjustment Programme SDA Social Dimensions of Adjustment SFID Société Forestière Idustrielle de la Doumé TFAP Tropical Forestry Action Plan THF Tropical High Forest UNDP United Nations Development Programme UNVDA Upper Nun Valley Development Authority USAID United States Development Programme WCMC World Conservation Monitoring Centre, UK WRI World Resources Institute WWF World Wide Fund for Nature ix CIFOR/CARPE - UNIVERSITY OF YORK, ENVIRONMENT DEPT CAMEROON SAP/DEFORESTATION STUDY Exchange rates (CFA F/US$), 1965-95 Year CFA F/US$ Year CFA F/US$ 1980 211.28 1965 245.06 1981 271.73 1966 245.08 1982 328.61 1967 246.00 1983 381.61 1968 247.56 1984 436.96 1969 259.96 1985 449.26 1970 276.40 1986 346.31 1971 275.59 1987 300.54 1972 252.03 1988 297.85 1973 222.89 1989 319.01 1974 240.70 1990 272.26 1975 214.31 1991 282.11 1976 238.95 1992 264.69 1977 245.68 1993 283.16 1978 225.66 1994 555.20 1979 212.72 1995 499.15 Source: IMF, International Financial Statistics (IFS), Yearbooks 1992 and 1998.